Skip to Content

Roche Holding AG ROG

Rating as of

Morningstar’s Analysis

Valuation
Currency in CHF
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Roche Shares Undervalued Post-Q3; Base Business Strength Outweighs COVID-19 Diagnostics Uncertainty

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

We're maintaining our $58/CHF 426 fair value estimate for Roche following solid 8% constant currency sales growth in the third quarter that reflects strength in the firm's core franchises. Management raised full-year 2021 guidance to mid-single-digit sales and similar core EPS growth, from low- to mid-single-digit growth, partly due to the rise of the delta variant and higher than expected continued sales of Roche's COVID-19 diagnostics (PCR and antigen tests, with CHF 4.6 billion in sales in the past 12 months) and treatments (antibody cocktail Ronapreve and immunology drug Actemra, which likely saw roughly CHF 2 billion in COVID-19 sales in the past 12 months). While visibility on future demand for COVID-19 products is weak, we generally expect lower demand in the fourth quarter, followed by a significant drop-off in 2022, which assumes that vaccines become available globally and that a new vaccine-resistant variant does not emerge.

Read Full Analysis

Company Profile

Business Description

Roche is a Swiss biopharmaceutical and diagnostic company. The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 60% of pharmaceutical sales, and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.

Contact
F. Hoffmann-La Roche Ltd
Basel, CH-4070, Switzerland
T +41 616888880
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 101,465

Related